The central bank took this decision as businesses have slowed down because of the Covid-19
According to Bangladesh Bank’s (BB) notice on Wednesday, borrowers of non-bank financial institutions (NBFIs) will not become defaulters until December 31, if they pay 50% of their loans' installments.
The central bank took this decision as businesses have slowed down because of the Covid-19.
Borrowers will now have to pay the rest of the installments within one year after completion of the repayment tenure of the loans.
NBFIs will not be allowed to transfer their unrealized interest or profit to their income segment during the given period mentioned by Bangladesh Bank.
This means only the interest amount, which is recovered from clients, can be added to the income segment, the notice said.
Earlier, on July 5 this calendar year, the BB relaxed its policy to allow the borrowers to get a chance to remain unclassified if they repay a minimum of 50% of the loan or lease as of June within August 31, 2021, on the basis of the NBFI-customer relationship following the resurgence of the Covid-19 outbreak.
On August 26, the central bank relaxed its policy (Banking Sector) further to allow the borrowers to get a fresh chance to remain unclassified, if they repay a minimum of 25% of the total outstanding amount of loans, for the whole calendar year to December 31.